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Investors Facing Dreary Outlook
Need to Adjust Their Strategies

By

Ian McDonaldThe Wall Street Journal Online

Updated April 11, 2002 8:40 p.m. ET

If your hopes for stocks are low after two lousy years, it might be a good idea to keep them right there.

Even after the worst two-year stretch since the early 1970s, prominent investors like Warren Buffet and reigning Morningstar manager of the year Bill Nygren aren't licking their chops. A combination of immodest valuations and middling profit growth will keep stocks' returns over the next decade below their 11% historical annual average and well off their heady 1990s pace, they and others say. The dreary theory, whether...